Efficient responses to climate change require accurate estimates of both aggregate damages and where and to whom they occur. While specific case studies and simulations have suggested that climate change disproportionately affects the poor, large-scale direct evidence of the magnitude and origins of this disparity is lacking. Similarly, evidence on aggregate damages, which is a central input into the evaluation of mitigation policy, often relies on country-level data whose accuracy has been questioned. Here we assemble longitudinal data on economic output from over 11,000 districts across 37 countries, including previously nondigitized sources in multiple languages, to assess both the aggregate and distributional impacts of warming temperatures. We find that local-level growth in aggregate output responds non-linearly to temperature across all regions, with output peaking at cooler temperatures (<10°C) than estimated in earlier country analyses and declining steeply thereafter. Long difference estimates of the impact of longer-term (decadal) trends in temperature on income are larger than estimates from an annual panel model, providing additional evidence for growth effects. Impacts of a given temperature exposure do not vary meaningfully between rich and poor regions, but exposure to damaging temperatures is much more common in poor regions. These results indicate that additional warming will exacerbate inequality, particularly across countries, and that economic development alone will be unlikely to reduce damages, as commonly hypothesized. We estimate that since 2000, warming has already cost both the US and the EU at least $4 trillion in lost output, and tropical countries are >5% poorer than they would have been without this warming.
Massive changes in the global food sector over the next few decades – driven by climate change and other environmental stresses, growing population and income, advances in technology, and shifts in policies and trade patterns – will have profound implications for the oceans. Roz Naylor, Senior Fellow and Founding Director of Stanford’s Center on Food Security and the Environment, will discuss the interplay between terrestrial and marine food systems, highlighting the rising role of aquaculture in helping to meet the nutritional demands of 9-10 billion people by 2050. As a platform for her talk, she will introduce a new research initiative at Stanford on “Oceans and the Future of Food”, co-led by the Center for Oceans Solutions (COS) and the Center on Food Security and the Environment (FSE).
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Abstract: Globalization and commodity exports have a long history in affecting land use changes and land rights on the tropical forest frontier. This paper reviews a century of social and environmental discourse around land issues for four commodities grown in the humid tropics—rubber, cocoa, oil palm and bananas. States have exercised sovereign rights over land and forest resources and the outcomes for deforestation and land rights of existing users have been quite varied depending on local institutional contexts and political economy. In the current period of globalization, as land use changes associated with tropical commodities have accelerated, land issues are now at center stage in the global discourse. However, efforts to protect forests and the rights of local communities and indigenous groups continue to be ad hoc and codification of minimum standards and their implementation remains a work in progress. Given a widespread failure of state directed policies and institutions to curb deforestation and protect land rights, the private sector, with the exception of the rubber industry, is emphasizing voluntary standards to certify sustainability of their products. This is an important step but expectations that they will effectively address concerns about the impact of tropical commodities expansion might be too high, given their voluntary nature, demand constraints, and the challenge of including smallholders. It is also doubtful that private standards can more than partially compensate for long standing weaknesses in land governance and institutions on the forest frontier.
“Do we have to accept deforestation to feed the world?”
That was one of the provocative questions that Stanford Woods Institute Senior Fellow and land use expert Eric Lambin posed during a recent presentation of research with far-reaching implications for policymakers, businesses and consumers. Among the findings Lambin discussed with Stanford students and faculty during a Stanford Department of Environmental Earth System Science seminar: There is much less potentially available cropland (PAC) globally than previous estimates have suggested. Perhaps surprisingly, however, we don’t need to clear more land, including forests, to plant hunger-alleviating crops, Lambin said.
Previous PAC estimates by international organizations such as the World Bank have been consistently too high, according to Lambin giving decision-makers “carte blanche” to approve a variety of uses for large tracts of land.
By 2030, the additional land worldwide that will be needed for urban expansion, tree plantations and biofuel crops will equal the additional land that will likely be devoted to food crops, according to Lambin. This rapid transformation of the face of the planet makes it essential to get a handle on realistic PAC estimates. To do so, Lambin took a “bottom-up approach” that incorporated factors such as soil quality, land use restrictions, labor availability and occupation by smallholders. Lambin also considered trade-offs such as the carbon stocks lost and natural habitat destroyed by land conversion.
Lambin’s resulting PAC estimates in regions ranging from Argentina to Russia are, on average, only a third of other generally accepted estimates. Along the way, Lambin discovered some surprises. For example, what initially looked like good news – the fact that some countries have gone from net deforestation to net reforestation in recent years – turned out to be less hopeful. Lambin found that most countries in the developed and developing worlds that have stopped cutting down their forests have increased their imports of timber and wood products, often from tropical countries. This “outsourcing of deforestation” is one of several troubling global land trends.
On the other hand, Lambin pointed out that production of crops essential to alleviating hunger have increased in recent years, but their overall land use has not, due to more efficient and intensive agricultural methods. This net gain contradicts assertions that more land, including forests, needs to be cleared for farming in order to alleviate hunger, he said.
The real culprit for such land conversion, according to Lambin, is growing adoption of a Western diet heavy with meat, sugar and vegetable oils. Deforestation for agriculture is often driven by multinational companies that cultivate in tropical regions to export fatty and oily food products to urban markets in rich countries and emerging economies. These companies control a majority of global food supply chains and, in turn, local land use decisions. “Globalization has reshaped land governance,” Lambin said.
Globalization is not a bogeyman, though. In fact, Lambin said, it can be an engine for progress on these issues by allowing for new forms of market-based governance that effectively promote sustainable land use. Market mechanisms such as eco-certification labels and nongovernmental campaigns can promote and incentivize responsible land use, he noted, pointing to coffee farmers he studied with School of Earth Sciences Research Associate Ximena Rueda. The farmers increased tree cover on their plantations with the extra profit they reaped from eco-certified beans.
Soybean production has become a significant force for economic development in Brazil, but has come at the cost of expansion into non-protected forests in the Amazon and native savanna in the Cerrado. Over the past fifty years, production has increased from 26 million to 260 million tons. Area planted to soybeans has increased from roughly 1 million hectares in 1970 to more than 23 million hectares in 2010, second only to the United States.
A new study out of Stanford University examines the role of institutions and supply chain conditions in Brazil’s booming soybean industry and the relationship between soy yields and planted area. With the demand for soybeans projected to increase far into the future a better understanding of the economic and institutional factors influencing production can help policymakers better manage land use change.
Using county level data the researchers found that soy area and yields are higher in areas with high cooperative membership and credit levels, and where cheap credit sources are more accessible. Cooperatives help producers secure lower prices for inputs or higher prices for outputs through group purchases and sales. They also enable producers to store their grain past the harvesting period and sell it when prices are higher.
“This suggests that soybean production and profitability will increase as supply chain infrastructure improves in the Cerrado and Amazon,” said lead author Rachael Garrett, a PhD student in Stanford’s Emmett Interdisciplinary Program in Environment and Resources.
The authors did not find a significant relationship between land tenure and planted area or land tenure and yields. But found that yields decline and planted area actually increases as transportation costs increase. More importantly, the study showed counties with higher yields have a higher proportion of land planted in soy.
“Policies intending to spare land through technological yield improvements could actually lead to land expansion in the absence of strong land use regulations if demand and per hectare profits are high,” said co-author Rosamond L. Naylor, director of Stanford’s Center on Food Security and the Environment.
The current Forest Code requires rural land users in the Amazon to conserve 80% of their property in a ‘Legal Reserve’, and landowners in the Cerrado to conserve 20%. Historically, illegal clearings have been common and enforcement of the Legal Reserve requirements remains poor.
While this study focuses on Brazil, the results underscore the importance of understanding how supply chains influence land use associated with cash crops in other countries. Future demand for soybeans, as well as for cash crops like Indonesian palm oil, will continue to grow as demand for cooking oil, livestock feed, and biodiesel increase with income growth and changing dietary preferences in emerging economies.
Ximena Rueda is a research associate at the School of Earth Sciences at Stanford University. Her research focuses on the impacts of globalization on land use, with particular attention to tropical commodities. She has extensive experience on rural development and environmental conservation in Latin America. Ximena received a BA and MA in Economics from Universidad de los Andes in Colombia, a Masters in City Planning from MIT, and a PhD in Geography from Clark University.
Stanford opened a research and education center at China’s Peking University, strengthening an already close academic bond and building a stronger tie to one of the world’s fastest-growing countries.
“Globalization is the defining characteristic of the 21st Century,” Stanford President John Hennessy said during an opening ceremony on March 21 that drew hundreds of academics, donors and government officials to the opening of the Stanford Center at Peking University.
“It is increasingly important for our students to understand what it means to be citizens of the world, to bring a more international perspective, to be able to communicate with others from different backgrounds or with different expertise,” he said. “Both Peking University and Stanford are stepping up to that challenge and moving to become more global institutions to address the challenges of this century. This new center exemplifies that.”
Designed as a resource for the entire Stanford community and administered by the university’s Freeman Spogli Institute for International Studies, 10 programs and departments – including the School of Medicine’s Asian Liver Center, the Bing Overseas Studies Program and the Rural Education Action Project – will locate operations at SCPKU.
FSI faculty already doing research in China showcased their work during conferences held in conjunction with the opening of the center.
The new building is available to the several hundred Stanford scholars studying, researching and conducting university activities in China each year. It also offers the opportunity for Stanford faculty to work with academics from Peking University and other universities throughout China.
“Stanford is one of the most valued partners of Peking University,” PKU President Zhou Qifeng said. “The center will create more opportunities through collaborative research, student and faculty exchange programs, joint teaching and other activities.”
The center makes Stanford the first American university to construct a building for its use on a major Chinese university campus. SCPKU will allow current educational programs to expand, but will not grant Stanford degrees.
The center’s distinctiveness is reflected in the building that houses it – a 36,000-square-foot structure that combines Chinese and Western architecture. The courtyard building was constructed with interlocking mortise-and-tenon joinery – a classic Chinese technique that eliminates the need for nails or glue.
Hand-painted scenes depicting typical Chinese landscapes and views from Stanford’s campus are featured on the building beams. At the point where beams and columns meet, artists added Chinese symbols for teaching, learning and scholarship.
State-of-the-art classrooms, conference rooms and meeting spaces fill out the two floors below the courtyard. Skylights, interior gardens and a reflecting pool invoke a natural setting.
The melding of styles brings as much substance as symbolism.
SCPKU “marks a new era of collaboration between two outstanding universities,” Gary Locke, the U.S. ambassador to China, said during the opening ceremony. “It also represents a new bridge of understanding between our nations – and most importantly – our peoples.
“There are virtually no problems in the world today that cannot be solved if the people – the scientists and engineers, and the business people – of the United States and China join together,” Locke said. “And this center will help make that happen.”
Stanford’s relationship with China dates to the late 1970s, when the university began accepting Chinese graduate students. Students from China have accounted for the largest number of Stanford’s foreign graduate students for the past decade, with about 600 enrolled last year.
Those scholars are part of the 160,000 Chinese students studying in American colleges and universities every year, a number that eclipses the 16,000 American students taking classes in China, Locke said.
“We have to know much more about each other’s cultures, customs, traditions, values and languages so we can build a mutual trust and understanding that will allow us to face all of the challenges we face,” he said. “The way to build that trust starts with building people-to-people interactions. It starts with more student exchanges…and it most certainly starts with the Stanford center here at Peking University.”
Over the last 30 years, Stanford’s bond with Peking University has grown from an initial collaboration between the schools’ Asian language departments to a wide range of joint research and academic exchanges.
In 2004, Stanford’s undergraduate study abroad and internship programs began at Peking University. The study abroad program continues to be managed by the Bing Overseas Studies Program, which hosts roughly 60 undergraduates every year on the Peking University campus. The internship programs are coordinated by the International, Comparative, and Area Studies Program.
The overseas studies program offers a broad curriculum taught by a Stanford faculty-in-residence who spends a 10-week quarter with the students in Beijing. A range of topical and language courses are taught by Peking University faculty.
“The new center at PKU allows us to continue this dynamic program in a new environment designed to encourage interaction across disciplines and with graduate students and faculty from both universities,” said Irene Kennedy, the program’s executive director. “We also plan to continue supporting and developing interactions between Stanford and PKU students through language partnering and by including Chinese students in classes taught by Stanford faculty and associated field trips.”
Jean Oi and Andrew Walder – both senior fellows at the Freeman Spogli Institute – began building on that relationship in 2006 by envisioning a way to bolster Stanford research, teaching, training and outreach activities in China. Their ideas led to the creation of SCPKU and several new academic programs, including a law school exchange program.
The $7 million project is funded entirely from gifts made to the Stanford International Initiative. The lead donor was the charitable foundation of the family of Chien Lee, a Hong Kong-based private investor and Stanford emeritus trustee who received his bachelor's and master's degrees from the university in 1975 and his MBA from the Graduate School of Business four years later.
The SCPKU building is named for his father, the late Lee Jung Sen, who attended Peking University in the mid-1930s when it was Yenching University. Lee’s mother, Leatrice Lowe Lee, graduated from Stanford in 1945.
A bust of Lee Jung Sen sits in SCPKU’s courtyard, one level above the modern facility and surrounded by the more familiar, traditional Chinese architecture.
In this paper, FSE visiting fellow Luiz Martinelli, along with FSE director Rosamond L. Naylor, Peter Vitousek, and Paulo Moutinho, contrasts the country's agricultural system with its oppressive record of income and land inequalities and environmental degradation. The authors discuss ways to reconcile economic, social, and environmental goals. Brazil faces this challenge and opportunity with other tropical developing countries--and with success, it could become a role model to other nations in Latin America, Asia, and Africa.
Johan Swinnen is Professor of Development Economics and Director of LICOS Center for Institutions and Economic Performance at the University of Leuven (KUL) in Belgium. He is also Senior Research Fellow at the Centre for European Policy Studies (CEPS), Brussels, where he directs the programme on EU agricultural and rural policy. From 2003 to 2004 he was Lead Economist at the World Bank and from 1998 to 2001 Economic Advisor at the European Commission.
He is a regular consultant for these organizations and for the OECD, FAO, the EBRD, and several governments and was coordinator of several international research networks on food policy, institutional reforms, and economic development. He is President—Elect of the International Association of Agricultural Economists and a Fellow of the European Association of Agricultural Economists. He holds a Ph.D from Cornell University.
His research focuses on institutional reform and development, globalization and international integration, media economics, and agriculture and food policy. His latest books are “Political Power and Economic Policy” (Cambridge Univ Press), “The Perfect Storm: The Political Economy of the Reform of the Common Agricultural Policy” (CEPS), “Global Supply Chains, Standards, and the Poor” (CABI), “Distortions to Agricultural Incentives in the Transition Economies of Europe and Central Asia” (World Bank Publications), and “From Marx and Mao to the Market” (Oxford University Press -- and Chinese translation by Beijing University Press). He is the president of The Beeronomics Society and editor of the book “The Economics of Beer” (Oxford Univ Press).